Core Insights - Quantum Song (NASDAQ: QSG) is transitioning into the trendy toy sector, launching a new original IP called SIINONO, which significantly boosted sales at its Shanghai store by 31.3% on the launch day [1] - The company completed a 61% acquisition of Shenzhen Yiqi Culture Co., Ltd. (Letsvan), marking a substantial step in its transformation towards the new consumption field [1][5] - The domestic trendy toy market is still in its early stages, with expectations of continued growth, projected to reach a total value of 110.1 billion yuan by 2026, with an annual growth rate exceeding 20% [2] Company Strategy - Quantum Song's strategy involves focusing on professional expertise, with Letsvan concentrating on designing emotionally resonant trendy toy IPs, while Quantum Song optimizes structure and resource efficiency [2][8] - The company aims to leverage celebrity endorsements and innovative marketing strategies to enhance the emotional connection between trendy toy IPs and consumers [7][8] Market Dynamics - The trendy toy market is evolving, with a shift from blind box competition to a more diverse range of products, including plush toys and articulated figures, driven by increased capital involvement [6] - The supply chain for trendy toys has improved, reducing the new product sampling cycle from six months to 72 hours, which enhances the ability to respond to market trends [6] Competitive Landscape - Companies entering the trendy toy market face challenges due to the short lifecycle of trendy toy products, which typically have a sales peak of no more than three months [9] - To achieve sustainable growth, trendy toy companies need to build four core competencies: supply chain resilience, lifecycle management, extensive distribution channels, and precision in craftsmanship [10]